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Investing & Doing Business in South Africa

Explore investment opportunities in South Africa, a gateway to Sub-Saharan Africa. Learn about the economic facts, competitiveness, success stories, and investment incentives in this growing economy.

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Investing & Doing Business in South Africa

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  1. Investing & Doing Business in South Africa Sofia, Nov 2012

  2. Content • 1. South Africa, Southern Africa & Africa • 2. Economic Facts and Trends • 3. Competitiveness and Doing Business • 4. Economic Success Stories • 5. Investment Opportunities • 6. Investment Incentives & Support • 7. Conclusion

  3. 1. South Africa, SADC, Africa

  4. 1. South Africa, SADC, Africa • SADC FTA signed in August 2008 – market of 250 million consumers • Future FTA with SADC,COMESA & EAC with a market of 800 million consumers • Africa with population of over 900 million and growing economy

  5. 1. South Africa, SADC, Africa • Area 1,22 million km2 • Population 50,6m (estimate) • 11 Official languages with English the business language • Total GDP: 2011 R2 964 bn (US$ 409 bn) • GDP 2011 per capita: R 58 549 (US$ 8 075) • Real GDP Growth: 3.1% (2011) • Inflation (CPI): 5% (2011 annual average) • Main Exports; minerals & mineral products, precious • metals & metal products, chemical & food products, • automotives & components. • Main trading partners: China, USA, Japan Germany, • India & the UK.

  6. 2. Economy • Africa • - GDP at US$ 1.9 trillion • - GDP Growth rate at 4.5 % (2011) projected to 5% (2013)

  7. 2. Economy - Trade

  8. 2. Economy – Fiscal position • Budget balance at -4.6 % (2011) • Decline to 3% by 2014 • Current Account : -4% of GDP • Balance of Payment: +0.3% • Foreign reserves: US$ 51 bn • Capital Formation: 20% of GDP

  9. Vast mineral resources: No.1 for PGM, Chrome, Manganese No.3 for Gold, Coal & Corporate Tax rate of 28% Well developed legal system bases on sound constitution Well developed & independent public institution (legal, economic etc) Prime Interest Rates at 8.5% Gateway to Sub-Saharan Africa JSE top 15 of global exchanges Well developed infrastructure: 3 of Africa’s busiest International airports (JNB, CTN, DBN) Africa’s largest container Port in Durban Mobile telecoms subscription at over 90% Well developed rail & road infrastructure Over 40 000 MW electrical generation capacity & network 3. Competitiveness & Doing Business

  10. Preferential Export market access: EU (FTA and TDCA) SADC USA- AGOA (Africa Growth Opportunity Act) Future Trilateral Free Trade Area (SADC-EAC-COMESA) Preferentila trade with India & Mercusor Special Export Zones (SEZ) Coega Port & Industrial Zone (heavy industries) East London Industrial Zone (Automotive Cluster) 3. Competitiveness & Doing Business

  11. Successful automotive cluster 272 000 exports from BMW (3 series), Mercedes Benz (C-Class), Toyota pick up, VW Polo, Ford Pick up, Nissan Pickup Exports to USA (C-class, 3-er) UK (Polo, Toyota pickup, Ford Pickup, Japan (C-class), Australia (Toyota, C-Class), GM 14% of Global Catalytic convertor supply 40-70% local content 4. Success Stories

  12. Coal & Gas to Liquid Technologies Sasol Fischer-Tropsch Process Deep Mining Technologies Some of deepest mines in the world (3 km) Mobile solutions & technologies Mobile banking & transactions 4. Success Stories

  13. Metals Cluster Steel Profiles, Construction steel, Piping, Locomotives & wagons, Industrial components Automotive Component and systems manufacturing Trucks, busses, tractors and special vehicles Agro Industries High value intensive agriculture Food processing for export markets Green Industries Solar panels and PV cells Wind turbines Chemicals, Pharma & Plastics Polypropelene articles & components Pharmaceuticals (APIs) 5. Opportunities (Industrial Plan)

  14. Advanced Manufacturing Nuclear components Aerospace and defence components and systems Titanium metal products Nanotechnologies Business Process Services Back Office Operations (Financial, medical, legal etc) Call Centers Remote & Offshore support services 5. Opportunities (IPAP)

  15. Economic Infrastructure Euro 30 billion for Rail infrastructure & rolling stock (2012-2015) Euro 300 billion for Nuclear Power plants (2014 – 2030) Euro 10 billion for sea port expansions Nanotechnologies Automotive Cluster Euro 200 million Mercedez Benz recap (2013) Euro 100 million Nissan expansion Euro 100 million VW expansion & localisation Other Euro 100 million renewable energy programme 6. Major Investment Programme

  16. Incentives

  17. Incentives

  18. Incentives

  19. Incentives

  20. Sector Information Finance to explore investment opportunities in SA Facilitating direct Government support in the form of: - information on investing in SA and the Business Environment - detailed investment Incentives - investment facilitation - after care – ongoing contact Conclusion • Contact Details • the dti Call Centre: 0861 843 384 • the dti Switchboard: +27 12 394 0000 • Investment Promotion: +27 12 394 1339/1032 • Website: www.thedti.gov.za • E-mail: investmentsa@thedti.gov.za • Postal Address: Private Bag X 84, Pretoria 0001 • South Africa

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